Sales of flat steel products by the Brazilian distributors have reached 315,600 mt in May, 5.0 percent less than in April, according to the sector institute INDA.
Under the same comparative basis, acquisitions by the distributors chain declined by 9.1 percent to 314,200 mt, while the level of inventories declined by 0.1 percent to 915,400 mt, reaching the equivalent to 2.9 months of consumption, a level considered as comfortable by the sector, still considering the uncertainties derived from the recently approved system of quotas and higher import tax for steel products.
Imports in May increased from April by 0.6 percent, reaching 243,600 mt, including heavy plates, HRC, CRC, zinc coated, HDG, pre-painted and Galvalume.
In comparison to April 2023, sales declined by 4.7 percent, acquisitions declined by 11.4 percent, and imports increased by 28.0 percent
For June 2024, expectations by INDA are for acquisitions and sales increasing by 1.0 percent from May.
Speaking in a conference with analysts, the president of Inda, Carlos Loureiro, said that the recent rains that have flooded the southern state of Rio Grande do Sul, which represents 12 percent of the sales of INDA's associates, had a severe impact on the activities of the sector, as most of its members had to suspend activities. According to Loureiro, the reconstruction of the state, including houses and roads, will require a significant volume of steel products, although it is still not possible to evaluate, as the reconstructions plans are still being developed.
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